EU Carbon tax for autos could be boon for diesel hybrids

The European Union is moving awfully close to adding a carbon tax to automobiles and such a tax might wipe out the extra costs of diesel hybrids in Europe according to AutoWeek.

"If we go from voluntary to compulsory limits and, say, the 120g/km average for 2011-2012 is enforced, then short of going to very small three-cylinder gasoline engines, the diesel hybrid will be required," says Andrew Fulbrook, powertrain analyst at CSM Worldwide's office in London.

At this point in time, it appears PSA/Peugeot-Citroen SA would be the leader in developing diesel hybrids in Europe. Of course, if Toyota sensed an opportunity to develop diesel hybrids for the European market, I'm sure they would quickly jump at the opportunity.